In a concerning development for the cryptocurrency exchange, Binance is being sued by the families of Hamas victims and hostages. Indeed, the plaintiffs have sued the exchange for its role in the facilitation of financing for Hamas and other terrorist organizations from 2017 through 2023.
The complaint was filed with the US District Court of the South District of New York this week. Moreover, it was filed “on behalf of United States citizens who were murdered, maimed, taken hostage, or otherwise injured in unspeakable acts of terror perpetrated by Hamas and other terrorist groups in Israel on October 7, 2023.”
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Binance Being Sued for Role in Hamas Financing
For the last few months, Binance has experienced a significant fall from its role as one of the most prominent crypto exchanges in the industry. Following a settlement in a years-long investigation, the exchange was without its founder and longtime CEO Changpeng Zhao. Now, it is facing legal action in the first month of 2024.
Binance has officially been sued by the families of Hamas victims and hostages. Indeed, the cryptocurrency exchange is being sued by the plaintiffs, alongside lawsuits against Iran and Syria. Specifically, it has been facing litigation over its role in financing Hamas and similar terror groups for several years.
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The Wall Street Journal previously reported that Palestinian Islamic Jihad obtained $93 million in crypto from August 2021 to June 2023. Moreover, Hamas obtained $41 million through that time. However, further reporting has noted that the figures showing crypto’s involvement in terror financing were likely inflated.
Still, the plaintiffs are targeting Binance for its role in the financing of these organizations. They note that the exchange provided, “a clandestine financing tool that Binance deliberately hid from US regulators.”
Binance had previously frozen more than 100 accounts linked to Hamas at the request of Israeli law enforcement. The request came following attacks that killed over 1,000 people, with hundreds more being held hostage.
